Oireachtas Joint and Select Committees

Tuesday, 15 July 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Pre-Budget Submissions: Discussion

3:50 pm

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

When I hear the positions of Chambers Ireland, IBEC and industry as against that of TASC which would come more from the left in terms of its general perspective, I wonder if there is a false dichotomy in that Dr. O'Connor, on the one hand, argues that this is a low tax economy - the implication is that we should increase the overall proportion of tax to fund public services - while the other side argues that we should reduce taxes to put money in people's pockets. Is that not a false dichotomy because as I listen more carefully to some of the points made, I find myself agreeing with both sides? It has more to do with the number of factors. It is a question not of whether this is a high or a low tax economy but about whom we tax and for what purpose. How do we balance the tax system? I would like Ms Burke to respond to this question. I agree with Mr. Cribben that we have to put more money in people's pockets. I have opposed the excise increases on alcohol and cigarettes because they are regressive, but, equally, when we are talking about tax relief, there is a big difference between giving tax to low and middle income earners who need extra spending power and to people at the very top end because even if they pay fewer taxes, they do not put the money back into the economy. They will invest it in property abroad, buy more yachts or whatever else it is very rich people do with their money.

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